Bangladeshi Finance Minister A.M.A. Muhith has opposed duty for allowing transit to India, but said a certain fee will be charged for transporting goods through the country. Bangladesh was geographically “a transit country and those who deny it are fools,” he added.

“While no Value Added Tax can be imposed on transit, it can be forced in case of transhipment. But as we will have to allow others to use Bangladeshi land for transit, some charges may be imposed for that,” Mr. Muhith said.

“If we charge duty, why then allow the transit?”

Mr. Muhith said a certain fee was to be taken as the government provides various facilities such as roads, railways and waterways. “The government is going to formulate a guideline to determine the transit fee,” he said, adding that there is currently a protocol only for waterways and railways.

Bangladesh receives about Bangladeshi Taka 5.5 billion for water transit from India.

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